Clair v. Mercedes ( 1997 )


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    UNITED STATES COURT OF APPEALS
    FOR THE FIRST CIRCUIT


    No. 96-1398

    CLAIR INTERNATIONAL, INC.
    AND FOREIGN MOTORS WEST, INC.,

    Plaintiffs, Appellants,

    v.

    MERCEDES-BENZ OF NORTH AMERICA, INC.,

    Defendant, Appellee.

    ____________________


    APPEAL FROM THE UNITED STATES DISTRICT COURT

    FOR THE DISTRICT OF MASSACHUSETTS

    [Hon. William G. Young, U.S. District Judge] ___________________

    ____________________

    Before

    Selya, Circuit Judge, _____________

    Aldrich and Cyr, Senior Circuit Judges, _____________________

    ____________________



    Richard B. McNamara, with whom Gregory A. Holmes and Stephanie A. ___________________ _________________ ____________
    Bray were on brief for appellants. ____
    Mark P. Szpak, with whom Peter K. Levitt and Ropes & Gray were on _____________ _______________ ____________
    brief for appellee.


    ____________________
    September 5, 1997
    ____________________



















    CYR, Senior Circuit Judge. Plaintiffs Clair CYR, Senior Circuit Judge. ________________________

    International, Inc. and Foreign Motors West, Inc. appeal from a

    district court judgment dismissing their respective claims for

    breach of contract and violation of Mass. Gen. Laws ch. 93B

    against Mercedes-Benz of North America ("MBNA"), the North

    American distribution organization for Mercedes-Benz automobiles.

    The central controversy concerns whether the restructuring

    effected by MBNA among its franchisees in the Greater Boston area

    during the mid-1990s breached its dealership agreement with

    plaintiffs-appellants. We affirm the district court judgment.

    I I

    BACKGROUND BACKGROUND __________

    During the early 1990s, MBNA was represented by two

    dealerships in the North Shore area of Greater Boston: Auto

    Engineering, Inc. ("Auto Engineering"), located in Burlington,

    and Gauthier Motors, Inc. ("Gauthier"), located in Salem. Auto

    Engineering closed in April 1993,1 leaving Gauthier as the only

    MBNA presence on the North Shore. Gauthier, among the older

    Mercedes-Benz dealerships in the United States, operated from

    what MBNA considered an inadequate facility, a small, outmoded

    dealership located in downtown Salem. In early 1993, MBNA

    approved a plan for relocating the Gauthier dealership to Route
    ____________________

    1Auto Engineering relocated its dealership without MBNA
    authorization on November 2, 1992. See McLane v. Mercedes-Benz ___ ______ _____________
    of North America, Inc., 3 F.3d 522, 523 (1st Cir. 1993). As a _______________________
    result, Mercedes gave notice of termination. Auto Engineering
    then obtained a temporary injunction prohibiting termination
    until April 11, 1993, at which time the injunction expired. See ___
    id. at 523-24. See infra p. 9. ___ ___ _____

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    128, which would enable it to service the entire North Shore

    area. Whereupon, Gauthier began its search for an outside

    investor to finance its relocation plan.

    Unable to secure a suitable investor, in October 1994

    Gauthier decided to sell its dealership outright to Michael

    Cantanucci, an experienced automobile dealer who already owned

    more than twenty non-MBNA franchises. In due course, Cantanucci

    obtained a purchase and sale agreement on a parcel of land along

    Route 128, as the site of the proposed new, exclusive MBNA

    dealership. After completing a routine "due diligence" check,

    which took approximately one month, MBNA approved the franchise

    transfer to Cantanucci.

    The exclusivity provision was important to MBNA, which

    faced increased competition from new luxury automobile lines and

    planned to shift to larger, exclusive dealerships in order to

    meet the challenge. At the time, moreover, MBNA had no exclusive

    dealership in the Greater Boston area, and Mercedes-Benz was

    developing several new products, at least one of which, a sports

    utility vehicle, was to be sold only at exclusive dealerships.

    Upon learning of the proposed location for the

    Cantanucci dealership, Herb Chambers, a Mercedes-Benz dealer in

    Somerville, Massachusetts, protested to MBNA, claiming that the

    proposed Route 128 site was too close to his Somerville

    dealership. In December 1994, Chambers brought an action against

    MBNA to enjoin construction of its proposed Route 128 dealership.

    Although the suit was dismissed in April 1995, six months had


    3












    elapsed during which Cantanucci had not proceeded with

    construction of the new dealership facility due to the Chambers

    litigation.

    Meanwhile, differences were developing between MBNA and

    Cantanucci concerning the proposed new dealership, particularly

    the timetable for construction, since MBNA had been without

    adequate North Shore representation for approximately two years.

    Moreover, during the summer of 1995 Cantanucci had agreed to

    acquire a Mercedes dealership in Connecticut, which concerned

    MBNA for two reasons. First, MBNA had never dealt with

    Cantanucci before, yet suddenly was faced with the prospect that

    he could control two MBNA dealerships in New England. Second,

    the $10,000,000 investment required for the Connecticut

    dealership could leave Cantanucci without adequate financing to

    proceed with the North Shore dealership, where MBNA considered an

    adequate Mercedes-Benz presence vital.

    These concerns were borne out when Cantanucci

    approached MBNA for permission to construct a smaller facility on

    Route 128, then attempted to renege on the exclusivity provision.

    Although Cantanucci later agreed to meet the original terms after

    MBNA declined his request, the new permanent facility on Route

    128 could not be completed for approximately ten more months, and

    Cantanucci declined to open a temporary service facility during

    the interim as MBNA had requested.

    At this point, with Gauthier running out of operating

    capital and MBNA confronting the prospect that there might soon


    4












    be no Mercedes-Benz presence on the North Shore, MBNA decided to

    offer its North Shore dealership to Chambers.

    The MBNA decision was based in part on its perceived

    need to move quickly, due to the extended period during which the

    North Shore had been without a suitable Mercedes-Benz presence,

    especially in light of the competition from new luxury automobile

    lines being marketed at large, exclusive dealerships. Further,

    MBNA considered Chambers the Mercedes-Benz dealer best able to

    become an immediate force in the North Shore market area. As an

    established Massachusetts automobile dealer, Chambers had access

    to advertising opportunities on a scale no new dealer could

    match. Indeed, MBNA regarded Chambers as its top dealer in the

    Greater Boston area, especially since he had the highest profit

    margin and was rated its best dealer "at point of sale."2

    Moreover, Chambers was well capitalized and planned to proceed

    immediately with construction of an exclusive dealership facility ___________

    meeting all MBNA specifications, on a very desirable site he

    already owned in Danvers, Massachusetts.

    In the meantime, Chambers had agreed to operate a

    temporary MBNA dealership facility at a site in Lynnfield,

    Massachusetts, pending construction of the permanent facility.

    Finally, he not only agreed to operate an exclusive Mercedes-Benz

    dealership on the North Shore, but to convert his existing

    ____________________

    2The "point of sale" rating assesses the degree of customer
    satisfaction with the dealer at the time the vehicle is
    purchased. Chambers fared less well in terms of the vehicle
    "service" rating.

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    Somerville dealership to an exclusive dealership as well, giving

    MBNA two exclusive dealerships in an important market area where

    it had none.

    At this point, MBNA approached Cantanucci, explaining

    that it intended to honor its commitment to him but would prefer

    that the North Shore dealership go to Chambers. MBNA offered to

    make Cantanucci whole, however, by reimbursing him for the amount

    paid to Gauthier for the North Shore franchise, as well as any

    out-of-pocket costs incurred.3 In August 1995, Cantanucci

    readily agreed to withdraw.

    On September 27, 1995, Gauthier ceased to operate,

    leaving MBNA with no permanent Mercedes-Benz dealership on the

    North Shore, though Chambers was operating the temporary

    dealership in Lynnfield, Massachusetts. See supra p. 5. ___ _____

    Thereafter, MBNA never sought another candidate for the North

    Shore area, having already concluded, even before Gauthier

    proposed Cantanucci, that Chambers was the preferred candidate,

    except for the fact that Chambers already owned a Mercedes-Benz ______ ___ ___ ____ ____ ________ _______ _____ _ _____________

    dealership in Somerville, a contiguous MBNA market area. __________ __ __________ _ __________ ____ ______ ____

    MBNA had a longstanding policy against granting the

    same dealer more than one dealership in contiguous market areas.

    Its dealership agreements in 1992 stated the policy as follows:

    [T]o foster competition among Mercedes-Benz
    ____________________

    3MBNA further proposed to make up any difference between the
    price Cantanucci had paid to acquire the Route 128 site, and the
    price received for it. Ultimately, however, Cantanucci sold the
    land to Chambers for the original purchase price. But see infra ___ ___ _____
    pp. 16-17.

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    dealers, it is Mercedes-Benz's policy not to
    permit, except in extraordinary ______ __ _____________
    circumstances, an existing dealer, owner, or _____________
    operator to have interest in the ownership or
    management of another competitive Mercedes-
    Benz sales and service dealership in the same
    area of responsibility or in a contiguous
    market area.

    (Emphasis added.) Nonetheless, a standard dealership agreement

    provision states:

    Notwithstanding any provision of this Agree-
    ment, the final decision whether to establish ___ _____ ________ _______ __ _________
    additional dealers, or relocation of [sic] an __________ _______
    existing dealer, shall be made by MBNA solely _____ __ ____ __ ____ ______
    pursuant to its own business judgment, and ________ __ ___ ___ ________ ________
    nothing in this Agreement shall be construed
    to require Dealer's consent to the
    establishment of an additional dealer or
    relocation of an existing dealer.

    (Emphasis added.) This "business judgment" provision and all

    other standard dealership agreement provisions are incorporated

    by reference into each dealership agreement.

    By the time MBNA awarded the North Shore dealership to

    Chambers, however, it was operating under a policy adopted in

    April 1993:

    [A] policy that existed in the past which _ ______ _____
    prohibited a proven successful Mercedes-Benz __________ _ __________
    operator from operating more than one Point, ________ ____ _________ ____ ____ ___ _____
    does not lend itself to the most effective ____ ___ ____ ______ __
    and efficient way to meet today's competitive ____ _______ ___________
    challenges. Today it is the strength of the __________
    overall dealership operation that insures
    customer satisfaction in terms of products
    and services.

    Therefore, it is in our best interests to __ __ __ ___ ____ _________ __
    permit, in appropriate circumstances, the ______ __ ___________ _____________
    common ownership of more than one dealer ______ _________ __ ____ ____ ___ ______
    point for the express purpose of meeting the _____
    challenges of a competitive marketplace.



    7












    (Emphasis added.)4

    On December 4, 1995, three dealers brought suit against

    MBNA: Clair International, Inc., located in Dedham; Foreign

    Motors West, Inc., located in Natick; and Smith Motor Sales of

    Haverhill, Inc., in Haverhill. Their complaint alleged that

    awarding Chambers a second dealership, to be based in Danvers

    a market area contiguous to the Somerville market area where

    Chambers already had a dealership breached their dealership

    contracts and violated Mass. Gen. Laws ch. 93B. The complaint

    sought only to enjoin Chambers from opening and operating a new

    dealership in Danvers, Lynnfield, or any other area contiguous to

    the Somerville dealership.

    Following a three-day bench trial, the district court

    found that MBNA had breached its contract with Smith, though not

    with Clair or Foreign Motors.5 It determined that the dealership

    provision governing contiguous market areas, see supra pp. 6-7, ___ _____
    ____________________

    4Although MBNA did not provide advance notice to existing
    dealers regarding its amended policy, appellants raise the notice
    issue solely in connection with their belated attempt to assert a
    chapter 93B claim independently of any breach-of-contract claim.
    See infra pp. 16-17 & note 7. ___ _____

    5The trial court decided that MBNA's conduct vis-a-vis Smith
    had been based on a "mixed" motive. It found that Smith did not
    operate the type of dealership MBNA wanted to work with in the
    future and that MBNA had already tried to persuade Smith to
    relocate to the larger Manchester, New Hampshire, market. Thus,
    the court found that MBNA had installed Chambers not only to meet
    its own pressing marketing needs in the North Shore area, but
    also to foster its goal of promoting larger dealerships. The
    district court further found that MBNA had not violated Mass.
    Gen. Laws ch. 93B, however, and denied the injunctive relief
    requested by Smith. Finally, since the court directed that a
    trial on damages be scheduled in the Smith case at a later date,
    Smith is not a party to the present appeal.

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    was contractual in nature, rather than a mere recital of company

    policy. The court nonetheless ruled that the unambiguous

    contract language required it to ascertain, from the vantage ____ ___ _______

    point of MBNA, whether or not "extraordinary circumstances" _____ __ ____

    warranted its business judgment to install Chambers in an

    additional dealership in a contiguous market area. The court

    went on to find that the demise of the Gauthier dealership,

    coupled with the closing of Auto Engineering, see supra note 1, ___ _____

    had given rise to an extraordinary circumstance in the eyes of

    MBNA. The court further found that it was vital to MBNA that

    Chambers be installed in the North Shore dealership, given the

    extended duration of its dealership problems in the area and the

    increased competition from other luxury automobile lines. The

    district court findings foreclosed all relief to Clair and

    Foreign Motors, whose claims for injunctive relief under chapter

    93B were premised exclusively on the alleged breach of their

    contracts by MBNA. Finally, the district court certified the

    judgment against Clair and Foreign Motors pursuant to Fed. R.

    Civ. P. 54(b) ("Rule 54(b)").

    II II

    DISCUSSION DISCUSSION __________

    1. Appellate Jurisdiction 1. Appellate Jurisdiction ______________________

    A. Rule 54(b) A. Rule 54(b) _________

    MBNA has moved to dismiss the appeal, on the ground

    that the Rule 54(b) certification was improper. Rule 54(b)

    permits entry of a final judgment as to fewer than all parties in


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    a civil action upon "an express determination that there is no

    just reason for delay." After provisionally denying the motion

    to dismiss, we instructed the parties to brief both the Rule

    54(b) certification challenge and whether 28 U.S.C. 1292(a)(1)

    might afford an alternate jurisdictional ground for the appeal,

    see part II, 1.B, infra. ___ _____

    The Rule 54(b) certification is problematic. First, it

    includes no findings on the relationship between certified and

    uncertified claims. See Credit Francais Int'l, S.A. v. Bio-Vita, ___ ___________________________ _________

    Ltd., 78 F.3d 698, 706 (1st Cir. 1996); Feinstein v. Resolution ____ _________ __________

    Trust Corp., 942 F.2d 34, 39-40 (1st Cir. 1991); Spiegel v. ____________ _______

    Trustees of Tufts College, 843 F.2d 38, 43 (1st Cir. 1988). ___________________________

    Moreover, our review of the record reveals substantial overlap

    between the Clair and Foreign Motors cases, on the one hand, and

    the Smith case awaiting trial in the district court. Yet the

    present appeal would have us interpret contractual provisions

    common to all three dealership agreements. See Bio-Vita, 78 F.3d ___ ________

    at 707-08 (Rule 54(b) certification improvidently granted in

    light of overlap between certified and pending claims); Kersey v. ______

    Dennison Mfg. Co., 3 F.3d 482, 487-88 (1st Cir. 1993) (Rule 54(b) _________________

    certification improper given interlocking factual issues common

    to adjudicated and unadjudicated claims); Spiegel, 843 F.2d at _______

    44-45 (Rule 54(b) certification improper where dismissed and

    pending claims "stem from essentially the same factual

    averments").

    Second, the central benefit identified in the district


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    court's decision to certify the adverse judgments against Clair

    and Foreign Motors that the appellate court might resolve the

    Mass. Gen. Laws ch. 93B claims in the process is illusory,

    especially since the district court has yet to address any

    chapter 93B claim. See infra p. 16.6 ___ _____

    B. Interlocutory Jurisdiction (28 U.S.C. 1292(a)(1)) B. Interlocutory Jurisdiction (28 U.S.C. 1292(a)(1)) ___________________________________________________

    The courts of appeals are invested with jurisdiction

    over appeals from "[i]nterlocutory orders of the district courts

    . . . granting, continuing, modifying, refusing or dissolving

    injunctions, or refusing to dissolve or modify injunctions." 28

    U.S.C. 1292(a)(1). Clair and Foreign Motors have not

    demonstrated that section 1292(a)(1) confers appellate

    jurisdiction over their claims.

    The district court order had the practical effect of

    denying injunctive relief to these appellants. See, e.g., ___ ____

    Manchester Knitted Fashions, Inc. v. Amalgamated Cotton Garment & _________________________________ ____________________________

    Allied Indus. Fund, 967 F.2d 688, 690 (1st Cir. 1992) (partial ___________________

    summary judgment had practical effect of granting injunction);

    Plymouth Cty. Nuclear Info. Comm., Inc. v. Boston Edison Co., 655 _______________________________________ _________________

    F.2d 15, 17-18 (1st Cir. 1981) (order precluding injunctive

    relief on stricken claims had "practical effect" of denying
    ____________________

    6We would have no occasion to address any chapter 93B claim
    at the present time. Were we to conclude that the district court
    erred in its interpretation of the dealership contract, or in its
    determination that MBNA did not breach the contract, we would
    remand to the district court for further consideration of the
    Clair and Foreign Motors claims. As there is no chapter 93B
    ruling to review, however, our remand order would leave any such
    claims for resolution by the district court in the first
    instance.

    11












    injunction). Consequently, appellants must satisfy the test set

    out in Carson v. American Brands, Inc., 450 U.S. 79, 84 (1981). ______ _____________________

    There, the Supreme Court announced that an

    interlocutory order which has the practical effect of granting,

    denying, or altering an injunction, is not immediately appealable

    as of right under section 1292(a)(1), unless the appellant can ______

    show that the order "might have a serious, perhaps irreparable,

    consequence, and that [it] can be effectually challenged only by

    immediate appeal." Id. (internal quotation marks omitted). See ___ ___

    also Casas Office Machines, Inc. v. Mita Copystar America, Inc., ____ ___________________________ ___________________________

    42 F.3d 668, 672-73 (1st Cir. 1994). Appellants, however, have

    identified no immediate and irreparable harm that would be

    occasioned were the district court order not immediately

    appealable.

    Nevertheless, given both the problematic nature of the

    Rule 54(b) certification and the time which has passed since its

    entry, we conclude that the interests of justice are best served

    by proceeding to the merits. See United States v. Connell, 6 ___ ______________ _______

    F.3d 27, 29 n.3 (1st Cir. 1993) (It is well settled that "an

    appellate court may forego the resolution of a jurisdictional

    question if, as is true here, the appeal is uncomplicated and

    easily resolved in favor of the party to whose benefit the

    jurisdictional question would redound."); see also Norton v. ___ ____ ______

    Mathews, 427 U.S. 524, 532 (1976); Sierra Club v. Larson, 2 F.3d _______ ___________ ______

    462, 466 (1st Cir. 1993); In re Unanue Casal, 998 F.2d 28, 33 ___________________

    (1st Cir. 1993); Narragansett Indian Tribe v. Guilbert, 934 F.2d __________________________ ________


    12












    4, 8 n.5 (1st Cir. 1991); Federal Deposit Ins. Corp. v. Caledonia __________________________ _________

    Inv. Corp., 862 F.2d 378, 381 (1st Cir. 1988). __________

    2. Construing the Dealership Agreements 2. Construing the Dealership Agreements ____________________________________

    The dealership agreements included two provisions

    directly pertinent to the MBNA decision to install Chambers in

    the North Shore area dealership. The first provision prohibits

    MBNA from awarding franchises to the same dealer in contiguous

    market areas except in "extraordinary circumstances." The second

    provision sweeps more broadly, however, enabling MBNA to exercise

    its business judgment as to whether an additional franchise

    should be awarded to an existing dealer in a contiguous market

    area.

    The district court made two important legal rulings

    regarding these provisions. First, it held that the "extraordi-

    nary circumstances" provision is contractual in nature and

    binding upon MBNA. It then construed the "extraordinary

    circumstances" provision in relation to the "business judgment"

    provision, as follows:

    But what does it mean? In the context read
    in light of the more sweeping clause . . .
    which leaves to Mercedes-Benz the virtually
    unfettered, save by the covenant of good
    faith and fair dealing . . . what does this
    more limited but more precise clause mean?
    Legally . . . to read it in harmony in . . .
    a way that effectuates the intention of the
    parties, it means that this clause is read
    such that, absent extraordinary circumstances
    in the eyes of Mercedes-Benz, they will not
    appoint a dealer to have two points in
    contiguous market areas and that they will
    interpret the implementation of this policy
    in a fashion as to foster competition, to
    give the phrase to foster competition

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    significance, in its context. Now, that's
    what this language means on its face.

    Thus, the district court rejected both the MBNA claim that the

    "extraordinary circumstances" provision was simply a policy

    statement, and the theory advanced by appellants that the

    "business judgment" provision had no application in the present

    context.

    Appellants challenge the district court ruling on the

    ground that its "extraordinary circumstances" determination

    should have been based on an objective reasonableness standard,

    not merely on reasonableness in the eyes of MBNA. As the present

    claim challenges the district court's construction of unambiguous

    contractual terms in an integrated agreement, we review de novo __ ____

    the "plain meaning" the district court ascribed to these terms.

    State Police Ass'n v. Commissioner of Internal Revenue, No. 97- __________________ _________________________________

    1319, slip op. at 5 (1st Cir. Aug. 20, 1997); United States ______________

    Liability Ins. Co. v. Selman, 70 F.3d 684, 687 (1st Cir. 1995). ___________________ ______

    The choice-of-law provision in the dealership agreement

    designates New Jersey law. See McCarthy v. Azure, 22 F.3d 351, ___ ________ _____

    356 n.5 (1st Cir. 1994) (reasonable choice-of-law provision to be

    respected). Since MBNA has its principal place of business in

    New Jersey, we honor this designation.

    As the district court recognized, "a document should be

    read to give effect to all its provisions and to render them

    consistent with each other." Mastrobuono v. Shearson Lehman ___________ ________________

    Hutton, Inc. 115 S. Ct. 1212, 1219 (1995) (Illinois law; citing ____________

    RESTATEMENT (SECOND) OF CONTRACTS 203 and cmt. b (1979); 202

    14












    (5)); see also Coolidge & Sickler, Inc. v. Regn, 80 A.2d 554, 557 ___ ____ ________________________ ____

    (N.J. 1951) ("'The design of the parties to a written contract is

    to be collected from the instrument as an entirety. . . . Words,

    phrases and clauses are not to be isolated but related to the

    context and the contractual scheme as a whole, and given the

    meaning that comports with the probable intention. The literal

    sense of the terms may be qualified by context.'" (quoting

    Mantell v. International Plastic Harmonica Corp., 55 A.2d 250, _______ ______________________________________

    255 (N.J. 1947))); Andreaggi v. Relis, 408 A.2d 455, 468 (N.J. _________ _____

    Super. 1979) ("All provisions of a document must be read and

    should be harmonized where possible in interpreting a docu-

    ment."). Unlike appellants, the district court construed the

    dealership agreement as a whole, in the sense that it did not

    render meaningless the broad contractual caveat that MBNA, in the

    exercise of its exclusive business judgment, was to be the

    ultimate arbiter. Thus construed, the "extraordinary circum-

    stances" provision simply encapsulates the essential nature of

    the business judgment MBNA is permitted to make regarding whether

    to award the same dealer more than one dealership in contiguous

    market areas.

    3. "Extraordinary Circumstances" 3. "Extraordinary Circumstances" ___________________________

    The district court based its "extraordinary

    circumstances" determination on the evidence adduced at trial.

    Focusing especially on the extended period during which MBNA had

    been without adequate representation on the North Shore, it found

    that "the demise or imminent demise of Gauthier on the North


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    Shore, coupled with the squeezing out of Auto Engineering . . .

    [was] an extraordinary circumstance in the eyes of Mercedes." We

    review its finding only for "clear error." Selman, 70 F.3d at ______

    687 ("clear error" standard "pertains whenever the trial court

    decides factual matters that are essential to ascertaining the

    parties' rights in a particular situation (though not dependent

    on the meaning of contractual terms per se)").

    The district court reasonably found that the extended

    absence of an adequate MBNA presence on the North Shore

    constituted an extraordinary circumstance in the eyes of MBNA,

    especially since MBNA was facing aggressive competition from new

    luxury automobile lines operating from large, exclusive

    dealerships, whereas MBNA had no exclusive dealership in the

    North Shore market area and soon could be without any dealership

    there. MBNA's decision to award a North Shore dealership to

    Chambers in these extraordinary circumstances, see supra Section ___ _____

    I, was well within the broad and exclusive "business judgment"

    discretion conferred upon it by the dealership agreement. There

    was no clear error.

    Next, we consider appellants' claims under Mass. Gen.

    Laws ch. 93B. Since there was no breach of contract by MBNA,

    their chapter 93B claims fail as well. See supra pp. 10-11 & ___ _____

    note 6.

    Appellants assert that MBNA promulgated a secret policy

    inconsistent with the contractual restrictions on multiple

    dealerships in contiguous market areas, and that MBNA "secretly


    16












    subsidized" Chambers by affording him financial assistance in

    acquiring the Route 128 property from Cantanucci. See supra note ___ _____

    3. Appellants mischaracterize the trial court record, however,

    in attempting to demonstrate that enough evidence of "general

    unfairness" by MBNA came in by consent, at trial, to raise the

    specter of a chapter 93B violation notwithstanding the absence of

    a breach of contract.

    The district court initially excluded all evidence of

    subsidies, since appellants had never alleged a chapter 93B claim

    independent of their breach-of-contract claims.7 Clair and

    Foreign Motors then changed course, and ultimately the proffered

    evidence was admitted, but only to establish "extraordinary

    circumstances." We cannot conclude, on such a record, that the

    proffered evidence came in by consent to establish "general

    unfairness." To the contrary, neither MBNA nor the district

    court acquiesced, let alone consented, to the trial of a chapter

    93B claim predicated on general unfairness. Nor did Clair or

    Foreign Motors move to amend their pleadings, see Fed. R. Civ. P. ___

    15(b), to reflect their newfound general unfairness theory.

    Given the explicit restrictions repeatedly imposed by the

    district court in allowing the "extraordinary circumstances"

    evidence, we conclude that the general unfairness theory was not

    tried below. See DCPB, Inc. v. City of Lebanon, 957 F.2d 913, ___ __________ _______________
    ____________________

    7Further, based on the fact that the complaint included no
    independent chapter 93B claim, the district court ruled that
    MBNA's failure to give its dealers notice of the new policy was
    immaterial, since MBNA had complied with the "extraordinary
    circumstances" provision in the dealership agreement.

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    917 (1st Cir. 1992) ("The introduction of evidence directly

    relevant to a pleaded issue cannot be the basis for a founded

    claim that the opposing party should have realized that a new

    issue was infiltrating the case."). See also In re Rauh, ___ ___ ____ ___________

    F.3d ___, ___, 1997 WL 394424, *7 (1st Cir. July 18, 1997)

    (collecting cases). 8

    III III

    CONCLUSION CONCLUSION __________

    Accordingly, the district court judgment is affirmed; ___ ________ _____ ________ __ ________

    costs to MBNA. _____ __ ____

























    ____________________

    8Appellants' further contention that an injunction should
    have been granted under the common-law standard was never
    raised below. See Violette v. Smith & Nephew Dyonics, Inc., 62 ___ ________ _____________________________
    F.3d 8, 10-11 (1st Cir. 1995), cert. denied, 116 S. Ct. 1568 _____ ______
    (1996); Desjardins v. Van Buren Community Hosp., 969 F.2d 1280, __________ _________________________
    1282 (1st Cir. 1992) (collecting cases).

    18